GST Registration

GST is the biggest tax reform in India, tremendously improving ease of doing business and increasing the taxpayer base in India by bringing in millions of small businesses in India. By abolishing and subsuming multiple taxes into a single system, tax complexities are reduced while tax base is increased substantially. Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim input tax credit of GST paid and could be penalised. Further, registration under GST is mandatory once an entity crosses the minimum threshold turnover or starts a new business that is expected to cross the prescribed turnover.

As per GST Council, entities in special category states with an annual turnover of Rs.10 lakhs and above would be required to register under GST. All other entities in rest of India would be required to register for GST if annual turnover exceeds Rs.20 lakhs. There are also various other criteria's as well that could make an entity liable for obtaining GST registration (irrespective of annual sales turnover). Entities required to register for GST as per regulations must file for GST application within 30 days from the date on which the entity became liable for registration under GST.

After obtaining GST registration, the entity will be required to file GST returns periodically. Failure to file GST returns will attract penalty. Entities with an annual turnover of more than Rs.1.5 crores will have to file monthly GST returns. The three returns to be filed by normal taxpayers are GSTR-1 (details of outward supplies) on the 10th of each month, GSTR-2 (details of inward supplies) on the 15th of each month and GSTR-3 (monthly return) on the 25th of each month. To reduce the compliance burden of small businesses with a turnover of less than Rs.1.5 crores, the Government has announced quarterly returns commencing from the quarter starting in October 2017.